HOUSTON, Feb. 1, 2016 /PRNewswire/ -- CenterPoint
Energy, Inc. (NYSE: CNP) (the "Company" or "CenterPoint Energy")
today announced that it is evaluating strategic alternatives for
the Company's investment in Enable Midstream Partners ("Enable"),
including a sale or spin-off qualifying under section 355 of the
U.S. Internal Revenue Code. CenterPoint Energy currently owns a 50
percent general partner interest and a 55.4 percent limited partner
interest in Enable, a publicly traded master limited partnership
the Company jointly controls with OGE Energy Corp
(NYSE: OGE).
Scott M. Prochazka, president and
chief executive officer of CenterPoint Energy, said, "We are
pleased with our investment in Enable, which has grown its
distributions during 2015 and continues to enjoy volume growth
despite a challenging commodity price environment. With continued
connections and drilling activity across its system, Enable is
well-positioned for long-term growth as commodity markets recover.
We believe that now is the right time to explore options for
unlocking the value of our strategic investment, reflecting our
continuous commitment to drive value for shareholders."
Additionally, the Company announced it will explore the use of
the REIT business model for all or part of the utility
businesses.
Mr. Prochazka continued, "The REIT structure has recently
received significant attention in the regulated utility industry in
Texas and could have substantial
potential for CenterPoint. We will continue to study the
possibilities and monitor developments, including related
regulatory proceedings and will present any findings to our
shareholders at the appropriate time."
There can be no assurances that these initiatives will result in
any specific action, and the Company does not intend to disclose
further developments on these initiatives unless and until its
Board approves a specific action in consultation with the Company's
financial and legal advisors.
This news release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based upon assumptions
management believes to be reasonable at the time made and are
subject to significant risks and uncertainties. Actual events
and results may differ materially from those expressed or implied
by these forward-looking statements. Any statements in this news
release that are not historical facts are forward-looking
statements. Each forward-looking statement contained in this news
release speaks only as of the date of this release. Factors that
could affect actual results include (1) state and federal
legislative and regulatory actions or developments affecting
various aspects of CenterPoint Energy's businesses (including the
businesses of Enable Midstream Partners (Enable Midstream)),
including, among others, energy deregulation or re-regulation,
pipeline integrity and safety, health care reform, financial
reform, tax legislation, and actions regarding the rates charged by
CenterPoint Energy's regulated businesses; (2) state and federal
legislative and regulatory actions or developments relating to the
environment, including those related to global climate change; (3)
recording of non-cash goodwill, long-lived asset or other than
temporary impairment charges by or related to Enable, (4) timely
and appropriate rate actions that allow recovery of costs and a
reasonable return on investment; (5) the timing and outcome of any
audits, disputes or other proceedings related to taxes; (6)
problems with construction, implementation of necessary technology
or other issues with respect to major capital projects that result
in delays or in cost overruns that cannot be recouped in rates; (7)
industrial, commercial and residential growth in CenterPoint
Energy's service territories and changes in market demand,
including the effects of energy efficiency measures and demographic
patterns; (8) the timing and extent of changes in commodity prices,
particularly natural gas and natural gas liquids, and the effects
of geographic and seasonal commodity price differentials, and the
impact of commodity changes on producer related activities; (9)
weather variations and other natural phenomena, including the
impact on operations and capital from severe weather events; (10)
any direct or indirect effects on CenterPoint Energy's facilities,
operations and financial condition resulting from terrorism,
cyber-attacks, data security breaches or other attempts to disrupt
its businesses or the businesses of third parties, or other
catastrophic events; (11) the impact of unplanned facility outages;
(12) timely and appropriate regulatory actions allowing
securitization or other recovery of costs associated with any
future hurricanes or natural disasters; (13) changes in interest
rates or rates of inflation; (14) commercial bank and financial
market conditions, CenterPoint Energy's access to capital, the cost
of such capital, and the results of its financing and refinancing
efforts, including availability of funds in the debt capital
markets; (15) actions by credit rating agencies; (16) effectiveness
of CenterPoint Energy's risk management activities; (17) inability
of various counterparties to meet their obligations; (18)
non-payment for services due to financial distress of CenterPoint
Energy's customers; (19) the ability of GenOn Energy, Inc.
(formerly known as RRI Energy, Inc.), a wholly owned subsidiary of
NRG Energy, Inc., and its subsidiaries to satisfy their obligations
to CenterPoint Energy and its subsidiaries; (20) the ability of
retail electric providers, and particularly the largest customers
of the TDU, to satisfy their obligations to CenterPoint Energy and
its subsidiaries; (21) the outcome of litigation; (22) CenterPoint
Energy's ability to control costs, invest planned capital, or
execute growth projects; (23) the investment performance of pension
and postretirement benefit plans; (24) potential business
strategies, including restructurings, joint ventures, and
acquisitions or dispositions of assets or businesses, for which no
assurance can be given that they will be completed or will provide
the anticipated benefits to CenterPoint Energy; (25) acquisition
and merger activities involving CenterPoint Energy or its
competitors; (26) the ability to recruit, effectively transition
and retain management and key employees and maintain good labor
relations; (27) future economic conditions in regional and national
markets and their effects on sales, prices and costs; (28) the
performance of Enable Midstream, the amount of cash distributions
CenterPoint Energy receives from Enable Midstream, and the value of
its interest in Enable Midstream, and factors that may have a
material impact on such performance, cash distributions and value,
including certain of the factors specified above and: (A) the
integration of the operations of the businesses contributed to
Enable Midstream; (B) the achievement of anticipated operational
and commercial synergies and expected growth opportunities, and the
successful implementation of Enable Midstream's business
plan; (C) competitive conditions in the midstream industry, and
actions taken by Enable Midstream's customers and competitors,
including the extent and timing of the entry of additional
competition in the markets served by Enable Midstream; (D) the
timing and extent of changes in the supply of natural gas and
associated commodity prices, particularly natural gas and natural
gas liquids, the competitive effects of the available pipeline
capacity in the regions served by Enable Midstream, and the effects
of geographic and seasonal commodity price differentials, including
the effects of these circumstances on re-contracting available
capacity on Enable Midstream's interstate pipelines; (E) the demand
for crude oil, natural gas, NGLs and transportation and storage
services; (F) changes in tax status; (G) access to growth capital;
and (H) the availability and prices of raw materials for current
and future construction projects; (29) effective tax rate; (30) the
effect of changes in and application of accounting standards and
pronouncements; (31) other factors noted in CenterPoint Energy's
Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2014,
as well as in CenterPoint Energy's Quarterly Report on Form 10-Q
for the quarter ended March 31, 2015, June 30, 2015, and Sept. 30,
2015, and other reports CenterPoint Energy or its subsidiaries may
file from time to time with the Securities and Exchange
Commission.
For more information contact
Media:
Leticia Lowe
Phone 713.207.7702
Investors:
David Mordy
Phone 713.207.6500
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SOURCE CenterPoint Energy, Inc.